Compensated Absences
During Year 1 (the first year of the company's existence), employees of the company earned vacation days as follows:
|
|
Average Wage
|
Vacation Days
|
Vacation Days
|
|
Employee
|
per Day
|
Earned This Year
|
Taken This Year
|
|
1
|
$160
|
10
|
10
|
|
2
|
200
|
15
|
10
|
|
3
|
250
|
20
|
5
|
(1) Make the journal entry necessary at the end of Year 1 to record the unused vacation days earned during the year and (2) make the journal entry necessary in Year 2 to record the use of all of these vacation days. Assume that all employees received a 10% pay raise in Year 2.